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Are you planning for the what ifs?

Written By Victoria Crowe | 7 June 2016

You may have planned how you'll pay off your mortgage and know how much is on your credit card but have you planned for the worst case scenario? Here's how you can plan for any future.

From emergency repairs to the house to long term illness and even death, spending some time thinking about how you'd cope financially with worst case scenarios is never time wasted and might just help you in the long run...

1. While you are earn a wage always keep an emergency fund of 3-6 months’ worth of expenditure recommends the Chartered Institute for Securities & Investment (CISI). This means that if you can't work for any reason you'll be able to keep your family going. If you can save more than this it's never a bad idea to have a little extra cash to play with.

2. If you work for a big company you will have some extra benefits so check these out and see how they can work for you. It's good to know what kind of sick pay your Human Resources department can offer too.

3. Start saving early especially for your retirement as leaving it later will mean you will have to save more. You can get a decent growth on your savings if you start early and so can invest it for the longer term. As a rough guide save 5% into a pension or ISA during your 20’s increasing to 10% in your 30’s recommends CISI.

4. Consider life insurance. Although the younger and more healthier you are, the cheaper the insurance cover will be there are plenty for older or less well. Make sure you shop around and always explain all of your health issues.

5. If you have children ensure that you've planned for the worst. By appointing guardians for your children you'll be able to ensure they're left with someone you'd like to bring them up. If not the Court will decide who looks after them. This must be done in writing, dated and signed by the parents. It can be done in a will but doesn't have to be.